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GSR 2015

120 06 ENERGY EFFICIENCY: RENEWABLE ENERGY’S TWIN PILLAR developments include: the United States and Canada set fuel economy standards to 2025; Mexico set its first standards; the European Union, China, and Japan tightened and extended light-duty fuel economy standards; India developed standards and is approaching their implementation; Chile introduced its first fuel economy labelling policy; and Mauritius developed and implemented the developing world’s first fuel economy/CO2 - based feebate system (with fees and rebates based on vehicle fuel efficiency).59 As of late 2014, vehicle fuel economy standards covered 70% of the world’s light-duty vehicle market.60 In the industrial sector, energy performance standards often target specific equipment. By the end of 2013, standards for electric motors used in industrial applications had been introduced in 44 countries, including Brazil, China, South Korea, and the United States.61 In 2013, China mandated the implementation of provincial-level energy management programmes targeting large energy users across the country.62 In the United States, 41 states operate ratepayer-funded energy efficiency programmes, and state energy offices in 35 states have industrial energy efficiency programmes that are separate from, or in support of, ratepayer-funded programmes.63 Fiscal incentives—such as rebates, tax reductions, and low- interest loans—also have been used to stimulate improvements in energy efficiency. For example, several European countries have enacted fiscal incentives in the building sector. In 2014, Italy and the Netherlands established revolving funds to help finance energy efficiency projects in buildings (also covering industrial installations and production processes in Italy); the Czech Republic established a green investment scheme, New Green Savings 2014+, which will allocate USD 83 million (CZK 1.9 billion) from revenues of emissions allowances (EU-ETS) auctions for efficiency improvements in buildings; and, in 2013, Poland launched two grant programmes to encourage efficiency in buildings.64 This Energy Efficiency Housing Programme provides performance-based grants to homeowners for renovations or highly efficient construction, and a similar programme for public buildings offers grants in the range of 30–70% of investment depending on the energy efficiency class of the building.65 In the transport sector, fiscal incentives have included tax credits and rebates for energy-efficient vehicles, including EVs. In 2013, Poland introduced a financing scheme to support projects with the goal of reducing energy consumption in urban transport. Beneficiaries include municipalities, utility companies that serve local public transport authorities, and other urban transport service providers under contract with municipalities.66 The United States and France offer rebates for fuel-efficient HEVs and EVs.67 Fiscal incentives also are used in the industry sector. In 2014, Turkey announced amendments to its investment incentive scheme with the aim of encouraging energy efficiency in industrial facilities.68 Germany introduced two subsidy programmes to support company investment, certification, and measuring related to energy efficiency.69 As of 2014, more than 40% of EU Member States had incentives in place to encourage the use of EnMS, around 15% of Member States had incentives for environmental management systems, and almost 35% of Member States had voluntary agreements. 70 Furthermore, market mechanisms exist to promote energy efficiency such as white certificate schemes, the energy efficiency equivalent of green certificate schemes used for renewables.

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